Internet businesses operator IAC/InteractiveCorp. (IACI) Tuesday reported a loss for the fourth quarter, compared with a profit last year, reflecting goodwill impairment related to Search & Media business. On an adjusted basis, earnings declined 89%, yet topped analysts' estimates.
Net loss attributable to the shareholders of the company was $1.01 billion or $7.94 per share, compared with a profit of $227.42 million or $1.57 per share in the previous year. Fourth quarter net loss included a $991.9 million after-tax impairment charge related to the goodwill and intangible assets of Search & Media business. Meanwhile, last year's net income and adjusted net income benefited from the sale of Jupiter Shop Channel.
Excluding items, adjusted earnings were $26.6 million or $0.20 per share, down from $249.6 million or $1.69 per share in the comparable quarter. On average, eighteen analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
The New York-based company's revenues increased 5% to $367.16 million from $351 million last year. Sixteen analysts estimated revenues of $339.59 million for the quarter.
Revenues from Search segment, which earlier known as Media & Advertising segment, generated revenues of $185.4 million, up 3% year over year, due to an increase in proprietary queries and the continued growth in distributed toolbar partners and queries, partially offset by a decline in revenue per query.
Match segment reported revenues of $83.3 million, down 6% from last year, reflecting the sale of Match Europe to Meetic in June, partially offset by the contribution from PeopleMedia which was not in the year ago period.
ServiceMagic Segment's revenues surged 51% year-over-year to $38.2 million that reflected a 46% growth in domestic service requests, driven primarily by increased marketing efforts, and a 21% growth in domestic service providers.
Media & Other segment, formerly known as Emerging Businesses, generated revenues of $63.5 million, 6% higher than last year, reflecting a strong holiday season for Shoebuy.com, the inclusion of Notional in the current period, continued growth at CollegeHumor and increased subscribers at Vimeo.
The company which runs Match.com, Ask.com and other websites reported general and administrative expenses of $76.72 million, up from $67.95 in the prior-year quarter. Total costs and expenses for the quarter increased significantly to $1.40 billion from $372.78 million a year ago.
For fiscal 2009, net loss widened to $978.82 million or $7.06 per share from $156.20 million or $1.08 per share in the previous year. Annual revenues dropped to $1.38 billion from $1.45 billion in the comparable period. Analysts expected earnings of $0.51 per share on revenues of $1.35 billion for the year.
IACI is currently trading at $21.95 per share, up $0.79 or 3.73%, on the Nasdaq. In the past 52-week period, shares had been trading in the range of $13.23 to $22.28.
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